In a report released today, James Orsborne from Stifel Nicolaus maintained a Hold rating on Oxford Nanopore Technologies PLC (ONT – Research Report), with a price target of p135.00.
James Orsborne has given his Hold rating due to a combination of factors affecting Oxford Nanopore Technologies PLC. The company’s revenue growth projections for 2025 are promising, with expectations of a 20-23% increase at constant currency, aligning with the higher end of estimates. However, this growth is still below the current consensus of 28%, indicating potential challenges in meeting market expectations.
Despite an attractive EV/Sales valuation compared to historical averages, the broader sequencing industry has experienced a notable derating, and there are significant headwinds such as a tight funding environment and expected cuts to NIH funding. Additionally, the dominant position of Illumina in the sequencing workflow and rising competition from companies like Roche present further challenges. These factors contribute to the cautious outlook, leading to the Hold rating as the company navigates these mid-term growth risks and aims for EBITDA breakeven by 2027.